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The relative lack of government regulation is an advantage

Indicate whether each of the following statements is true or false.

1. The corporation is an entity separate and distinct from its owners.

2. The liability of stockholders is normally limited to their investment in the corporation.

3. The relative lack of government regulation is an advantage of the corporate form of business.

4. There is no journal entry to record the authorization of capital stock.

5. No-par value stock is quite rare today.

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Accounting Basics: The relative lack of government regulation is an advantage

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